A debit card is similar to a credit card: it is a plastic card embossed with a name and account number, with a magnetic stripe on the back. It differs from a credit card by taking money for a purchase or cash advance from a checking account instead of charging against a line of credit.
The debit card allows a merchant to immediately withdraw the funds for an authorized transaction from your checking account. You provide authorization by presenting the card and entering a PIN (personal identification number) in the terminal at the store.
Related Fool Articles
Recent Mentions on Fool.com
- The Markets Misunderstand Visa -- Again
- Massive Change Could Be Coming at American Express Company
- 3 Things to Watch Carefully at Visa Inc
- Is a Post Office Bank the Answer To Payday Lending?
- Tired of ATM Fees? Your Brokerage - Not Your Bank - May Be the Best Place To Turn To
- Is This What Apple, Inc.'s Payments Service Will Be Called?